Liberals are trying a new tactic to get to the bottom of allegations that the Prime Minister's Office interfered in an independent audit of Mike Duffy's expenses. (CP)

OTTAWA - Liberal senators tried a new tactic Thursday to get to the bottom of allegations that the Prime Minister's Office interfered in an independent audit of Mike Duffy's expenses.

James Cowan, Liberal leader in the Senate, asked Senate Speaker Noel Kinsella to rule that the interference, on its face, constitutes a breach of senators' privileges.

Kinsella reserved judgment.

If Kinsella determines there was a breach of privilege, the matter would be referred to a Senate committee for further study.

That could give Liberals another opportunity to try to call two key witnesses alleged to have been involved in the audit interference: Conservative Sen. Irving Gerstein and Deloitte managing partner Michael Runia.

Two previous Liberal attempts to get Runia to testify at the Senate's internal economy committee were defeated by the Conservatives, who hold a majority in the upper house.

And Gerstein ruled out of order Wednesday a Liberal attempt to have him step aside as chairman of the Senate banking committee until he's cleared by the RCMP or agrees to testify at internal economy about his role in the matter.

Cowan said he was forced to raise a question of privilege on the matter because "all other reasonable avenues of redress have been blocked."

According to witness statements and emails obtained by the RCMP and filed in court, Prime Minister Stephen Harper's former chief of staff, Nigel Wright, enlisted Gerstein's help in concocting a deal in which Duffy would repay $90,000 in questionable living expense claims.

Duffy agreed to the deal on condition that he would be reimbursed the full amount, that a Senate report on his conduct would not be critical of him and that there would be no question about his eligibility to sit as a senator from Prince Edward Island, although he lived primarily in Ottawa.

Gerstein, who heads the Conservative party's fundraising arm, initially agreed that the party would reimburse Duffy — when the tab was thought to be $32,000 — but balked when it became clear it was more than $90,000. Wright eventually reimbursed Duffy out of his own pocket.

At Wright's behest, Gerstein also talked to Runia, who audits the Conservative party's books, to ensure the audit would make no finding as to whether Duffy's primary residence was in Ottawa or P.E.I. — which it did not.

"Why should the chief of staff to the prime minister be sending emails discussing the desired outcome of an independent audit ordered by the Senate? If this is not evidence of interference, I don't know what would be," Cowan told the Senate.

Gary Timm, lead auditor on the Duffy file, last week told a Senate committee that Runia called him to find out how much Duffy owed in questionable expenses. But he and two other members of his audit team maintained they imparted no information about the confidential audit and that their findings were not influenced by anyone.

However, Cowan noted that the RCMP documents show Wright and other top PMO aides knew — one month before the findings were disclosed to the Senate which ordered and paid for the audit — that it would make no finding about Duffy's primary residence because the senator was refusing to speak to auditors.

Indeed, Cowan argued that PMO interference "began virtually from inception," even before the internal economy committee announced its decision to order an external audit of expenses claimed by Duffy and two other senators — Patrick Brazeau and Mac Harb.

The RCMP documents say Wright called committee chair David Tkachuk, asking that the wording of the audit announcement "differentiate" Duffy's case from that of Brazeau and Harb, a request which was accommodated by adding an extra line that the committee was seeking legal advice about Duffy's residency.

Claude Carignan, the government leader in the Senate, dismissed Cowan's arguments.

"Adding one line to a press release, that constitutes interference? ... That's unbelievable. I'm awestruck," he scoffed.

As for Runia's call to Timm, Carignan characterized that as one associate calling another associate about an inconsequential matter that in no way interfered with the integrity of the audit.

He argued there's "not a shadow of proof" that the audit findings were leaked to anyone in the PMO. But even if PMO did have some advance knowledge, Carignan put that down to a normal "exchange of information" between a party leader's office and members of his caucus.

A spokesman for Deloitte, meanwhile, did not answer when directly asked if the firm still has confidence in Runia or whether he's been disciplined or sanctioned in any way.

Rather, Vital Adam reiterated Deloitte's insistence that "the utmost confidentiality of all forensic examination information was maintained at all times."

"Deloitte has co-operated fully with the ongoing investigations into this matter and it would be inappropriate for us to provide further comment while these investigations continue," Adam said in an email.

The alleged audit interference was also fodder in the House of Commons on Thursday, with New Democrats and Liberals demanding to know why the government is refusing to call Runia and Gerstein as witnesses.

"Why, if the Conservatives have nothing to hide, do they have an interest in blocking Runia's testimony?" NDP Leader Tom Mulcair demanded.

Harper responded that "the auditors who performed the audit have already testified before the Senate and they testified to the integrity of their audit."

"All of them, except for one," Mulcair shot back.

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Highlights From The Wright-Duffy Police Documents

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Sen. Mike Duffy sent an email to Nigel Wright following a news story referencing a Senate matter.
(Continued)

In an March 8 email, Wright told Chris Woodcock the party would not be paying the Duffy cheque.

On May 9, Wright responded to an email forwarded by Ray Novak from Sen. Linda Frum over concerns about protecting Tory senators.

On page 26 of the documents, the RCMP note "On February 15, there were e-mail discussions within the PMO about the Senate
Rules committee and a proposed definition of residency, Nigel Wright e-mailed Benjamin Perrin."

On page 44 of the documents, the RCMP detail an email exchange between Tory Senator Carolyn Stewart Olsen and PMO staffers Chris Woodcock and Patrick Rogers.

Page 32 of the documents details a Feb. 22 email from Nigel Wright to staffers in the PMO, including lawyer Benjamin Perrin.

Page 45 of the documents details an email on May 14 from PMO staffer Andrew MacDougall to Nigel Wright and others. MacDougall says he has received inquiries from a journalist about Nigel Wright co-signing a loan for Senator Duffy to repay the money. Carl Vallee, PMO Press Secretary, writes:
"Would the PM know the actual answer to the question? Just in case he asks us."

It is believed that Wright was earning more than $2 million in salary and bonuses at Onex, but made around $300,000 working on Parliament Hill.

Along with John Baird, Jason Kenney, and James Moore, Wright was one of four “single, white males” profiled in Maclean’s magazine in 2011 as holding immense power in Harper’s inner circle. Moore has since tied the knot.

Wright would apparently run a half-marathon each morning before starting a 14-hour work day at Onex.
He has kept that pace after he began working in Ottawa.
He is said to be fond of telling a story of once being surrounded by several snarling dogs during an early morning run - a perfect metaphor for politics.

Wright was a speechwriter and policy adviser to former prime minister Brian Mulroney.
He was also policy co-ordinator for Kim Campbell's leadership campaign.

Wright considered joining the Anglican priesthood as a young man. He is currently a subdeacon at St. Thomas’s Anglican Church in Toronto.

The federal ethics watchdog cleared Wright of conflict of interest allegations in January.
Ethics commissioner Mary Dawson investigated Wright after it was reported he was lobbied on three occasions by Barrick Gold Corp, despite deep personal connections to the company’s founding family.
Dawson found there was no violation of the Conflict of Interest Act.

Also, not for naught: what the hell is Mike Duffy doing with his money that he can't pay back his improper expenses?

Mike Duffy: "I stayed silent on the orders of the PMO." For whatever reason, the sentence just sends chills up my spine.

Mike Duffy is such an idiot. I wish Frank Magazine was still around to really savage him properly.

There's only one explanation - Wright expected SEX in return for his gift of $90K to Mike Duffy. Happens all the time. #cdnpoli

Welfare cheats are kicked out for $90 but PM Harper gave Mike Duffy Senate job and he cheated $90,000 #cdnpoli #HarperHistory #BadEconomy

Karma, Mike Duffy. Karma. #CutTheChequeNigel

This Mike Duffy story just keeps getting better and @RobertFife hasn't slept in 5 days!

The $90,172 Nigel Wright covered considered a gift that Sen. Mike Duffy will have to pay taxes on. #cdnpoli